EPA reduces cellulosic ethanol quotas, but not overall quotas

The EPA has finally announced the 2010 RFS standard, albeit several months late.

While there is no change in the ethanol mandate increase — the gasoline industry must blend more than 12 billion gallons of ethanol in 2010, up from 10.5 billion gallons in 2009 — the real surprise is that the EPA is not going to hold the emerging cellulosic ethanol industry to its production quota of a measly 100 million gallons. It will only have to contribute 6.5 million gallons of ethanol.